IAG has taken an unusual step for an insurer by warning against ACT compulsory third party (CTP) draft laws that may make it more difficult for low-income earners to have their injuries independently assessed.

The draft legislation says claimants should pay an “excess” if they seek an independent medical examination in cases where the insurer believes they are unlikely to have a permanent impairment.

“This may be an unusual position for an insurer to take, but we think if the injured person feels they have got a disability or an impairment, they should be allowed to go and get that assessed,” IAG Senior Manager Scheme Design, Policy and Injury Prevention Meghan Isley told a hearing in Canberra.

“Having an excess requirement really makes it difficult for those people who are low-income earners, which is not fair.” 

IAG is also concerned at the requirement for injured people to select whether the insurer pays for either a physical assessment or a psychological assessment, citing the example of a woman affected by multiple physical injuries.

“It seems unfair that then she has the requirement to fund her psychological assessment; that is unusual,” Ms Isley said. “We have not seen that in any other jurisdiction and we would like to see that changed.”

IAG has also joined calls for greater flexibility on time limits for children, who require a longer period for injury impacts to stabilise, and suggests people working beyond retirement age should receive some benefits for about a year after an accident.

The ACT Government referred the new no-fault CTP legislation to its Justice and Community Safety Committee for consultation in September. Further hearings are being held today and tomorrow.

The committee will report by December 14 after its deadline was extended from November 1.